Coalition Finds More Than Half of Cyber Insurance Claims Originate in the Email Inbox
24 Abril 2024 - 1:00PM
Business Wire
Coalition’s 2024 Cyber Claims Report Also
Reveals Increased Risks Associated with Boundary Devices like
Firewalls and VPNs
Coalition, the world's first Active Insurance provider designed
to prevent digital risk before it strikes, today published its 2024
Cyber Claims Report, which details emerging cyber trends and their
impact on Coalition policyholders throughout 2023. The report found
that more than half (56%) of all 2023 claims were a result of funds
transfer fraud (FTF) or business email compromise (BEC),
highlighting the importance of email security as a critical aspect
of cyber risk management.
“Threat actors want to get paid, and the email inbox has proven
to be an easy place for an attacker to uncover payment information
and potentially intervene in payment processes to steal funds,”
said Robert Jones, Coalition’s Head of Global Claims. “In 2023,
Coalition endeavored to make recovering from a cyber incident as
painless as possible for our policyholders: We successfully helped
claw back more than $38 million in fraudulent transfers and handled
52% of all reported matters without out-of-pocket payments.”
The report also revealed an increased risk for organizations
using boundary devices, such as firewalls and virtual private
networks. While these tools can help to reduce cyber risk, using
some boundary devices can actually increase the likelihood of a
cyber claim if they have known vulnerabilities. For example,
Coalition found businesses with internet-exposed Cisco ASA devices
were nearly five times more likely to experience a claim in 2023,
and businesses with internet-exposed Fortinet devices were twice as
likely to experience a claim.
“We also found that policyholders using internet-exposed remote
desktop protocol were 2.5 times more likely to experience a claim,”
said Shelley Ma, Incident Response Lead at Coalition’s affiliate,
Coalition Incident Response. “With new AI tools making it even
easier to execute targeted cyber attack campaigns and identify
exploitable assets, having an active partner that can help protect
your organization from digital risk is crucial.” This new insight
comes following Coalition’s Security Labs researchers’ discovery of
a 59% increase in unique IP addresses scanning for open remote
desktop protocol throughout last year.
Other key findings from the report include:
- Overall claims frequency increased 13% year-over-year (YoY),
and overall claims severity increased 10% YoY, resulting in an
average loss of $100,000. Claims frequency increased across all
revenue bands, with businesses between $25 million and $100 million
in revenue seeing the sharpest spike (a 32% YoY increase).
- As ransomware payments hit $1 billion globally, Coalition
ransomware severity dropped by 54%. Ransomware severity, frequency,
and demands all dropped in 2H 2023, though not enough to offset the
surge in 1H.
- Ransomware frequency was up 15% YoY, and severity was up 28%,
to an average loss of more than $263,000.
- When policyholders found it reasonable and necessary to pay a
ransom, Coalition helped policyholders negotiate demand amounts
down by an average of 64%.
- FTF frequency increased by 15% YoY, and severity increased by
24%, to an average loss of more than $278,000.
- BEC frequency increased by 5% YoY, and severity decreased by
15%.
Download the full 2024 Cyber Claims Report from Coalition to
learn more:
https://info.coalitioninc.com/download-2024-cyber-claims-report.html.
About Coalition
Coalition is the world's first Active Insurance provider
designed to help prevent digital risk before it strikes. By
combining comprehensive insurance coverage and cybersecurity tools,
Coalition helps businesses manage and mitigate potential cyber
attacks. Leveraging its relationships with leading global insurers
and capacity providers, including Coalition Insurance Company,
Coalition offers Active Insurance products to businesses in the
U.S., the U.K., Canada, and Australia. Policyholders can receive
automated cyber alerts and access expert advice and global
third-party risk management tools through Coalition's holistic
cyber risk management platform, Coalition Control™.
Insurance products are offered by Coalition Insurance Solutions
Inc. (“CIS”), a licensed insurance producer and surplus lines
broker with its principal place of business in San Francisco, CA
(Cal. license #0L76155), acting on behalf of a number of
unaffiliated insurance companies and available on an admitted basis
through certain carriers. Insurance products offered through CIS
and CIC may not be available in all states. CIS may receive
compensation from an insurer or other intermediary in connection
with the sale of insurance. All decisions regarding any insurance
products referenced herein, including approval for coverage,
premium, commission, and fees, will be made solely by the insurer
underwriting the insurance under the insurer’s then-current
criteria. All insurance products are governed by the terms,
conditions, limitations, and exclusions set forth in the applicable
insurance policy. Please see a copy of your policy for the full
terms, conditions, and exclusions. Copyright © 2024. All rights
reserved. Coalition and the Coalition logo are trademarks of
Coalition, Inc. or its affiliates.
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version on businesswire.com: https://www.businesswire.com/news/home/20240424779652/en/
Marisa Graves Communications at Coalition
press@coalitioninc.com